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December 4, 2023 8:16 am

CBI registers FIRs against Mumbai-based firm for Rs 388 cr bank loan fraud

The Fact News Service
New Delhi, August 23

The Central Bureau of Investigation has registered two separate cases against Mumbai-based Varun Industries Ltd for allegedly defrauding two public sector banks for an amount to the tune of Rs 388.17 crore.

The agency has registered a case against Kiran Mehta and Kailash Agarwal, promoters and directors of Varun Industries Ltd (VIL).

In the first case CBI received a complaint against VIL for defrauding the Central Bank of India to the tune of Rs 269.29 crore. The allegations in the complaint revealed that the accused company had availed various credit facilities from the Central Bank of India in a consortium led by Indian Bank, with a total sanctioned working capital-term loan limit of Rs 292.15 crore in September 2011.

Out of the said limits, a term loan of Rs 19.45 crore was sanctioned outside the consortium for a windmill power project at Jaisalmer.

The complaint further revealed that the company did not remit export payment received from the sale of goods received under the Letter of Credit to meet the import Leg of Merchant Transaction.

The merchant trade LC was issued by the bank on the request of the company. It is further alleged that the transactions under this head were dishonestly intended to siphon out the funds from the banking channel.

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